a. Discuss whether you would expect any change in the correlations between returns on

shares in a developing country in west Africa and returns on shares in a developing country in north over time. If so, why?

b. Briefly explain any four (4) sources of investment risk.

c.. Why DOES estimating the value for a bond easier than estimating the value for

shares.

D . At a lunch with some business associates, you discuss the reason for the relationship

between the economy and the stock market. One of your associates contends that she has

heard that stock prices typically turn before the economy does. How would you explain

this phenomenon?